The reports state that while the arm registered a growth in revenue, the losses indicated operational and financial challenges
After three years of acquisition, ecommerce major Flipkart has decided to shut down its arm ANS Commerce and laid off its entire workforce, as per the media reports. The firm has gone ahead with this step despite the full stack ecommerce enabler posting a significant increase in operating revenues.
The decision comes three years after it acquired the Gurugram-based company which had been providing a wide range of ecommerce services which included store technology, performance marketing as well as warehousing solutions, the reports added.
As per the reports, while ANS commerce posted a 39.4 per cent increase in operating revenue to Rs 54 crore in the previous financial year (FY24), its net loss widened to Rs 73.8 crore. The reports cited Flipkart’s spokesperson who stated that the company was committed to ensuring a smooth transition for all stakeholders, including employees and customers as its decided to close its operations.
One of the primary reasons for this closure is being attributed to the increasing losses of ANS commerce. The reports stated that while the arm registered a growth in revenue, the losses indicated operational and financial challenges, leading up to its shutdown. The reports added that this step marks a shift in the ecommerce major’s approach to ecommerce enablement.
The media reports also highlighted that the decision regarding the shutdown of ANS commerce has resulted in layoffs as well, affecting many employees. However, Flipkart has assured that it will be handling the transition phase for all concerned parties smoothly, as per the reports.
